Taipei, Wellington and Manila were also down, though Singapore edged slightly higher.

'Wall of worry'

David Kudla, chief executive officer of Mainstay Capital Management, told Bloomberg Television: "We've come up upon a tremendous wall of worry for US stocks and stocks around the world. Concern among investors is the deceleration in earnings growth."

Energy companies were among the worst hit after both main contracts plunged more than four percent Tuesday after Saudi Energy Minister Khalid al-Falih said the major producer would boost output and spare capacity to help maintain supplies.

Prices had hit four-year highs this month with sanctions due to be imposed on Iran next month, while Venezuela continued with an economic and political crisis and US data pointed to a pick-up in demand.

However, they have dipped in recent weeks owing to growing concerns about the global economy, particularly China, and a rise in the US dollar, which makes the commodity expensive for holders of other currencies.